Paraguay to Update Gambling Laws Ending Legal Monopolies

The Paraguay government is considering a major overhaul of its gambling laws in a bid to encourage more competition in the market and modernize outdated legislation.

Strengthening Conajzar as a Regulatory Body

Government proposals seek to amend Law No. 1,016/1997. The legislation established the National Gambling Commission of Paraguay (Conajzar) which was given oversight of gambling regulation across the country. One of the main objectives of the proposed reforms is to integrate Conajzar into the National Tax Revenue Directorate (DNIT), enhancing its authority and financial oversight capabilities.

In addition to expanding Conajzar’s regulatory powers, the reform emphasizes “institutional optimization” with a refreshed legal structure. The updated framework would position the general director of Conajzar as the key coordinator for the development, supervision, and regulation of gambling in Paraguay.

The proposal states:

“With these regulatory modifications, Conajzar’s powers will be fortified, enabling it to serve as a stable, professional, and solvent regulatory body while adapting to the social and economic changes that necessitate the removal of previously established legal monopolies.”

Embracing Competition

Since the introduction of Law No. 1,016/1997, Paraguay has granted exclusive franchises for gambling through public tender, creating legal monopolies. This provides exclusive rights for games of chance like lottery, telebingo, and sports betting nationwide, while granting departmental permissions for bingo and racetracks, and municipal-level authorizations for horseracing and electronic games of chance venues.

Backed by Finance Minister Carlos Fernandez Valdovinos and President Santiago Peña, the current initiative aims to include market liberalization, allowing private operators to enter the industry without the need for public tender.

According to the proposal, these monopolies “must be eliminated,” recognizing Paraguay’s ongoing social and economic transformations since the new administration took office in August 2023.